Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/197920
Authors: 
Hohberger, Stefan
Priftis, Romanos
Vogel, Lukas
Year of Publication: 
2019
Series/Report no.: 
Bank of Canada Staff Working Paper 2019-6
Abstract: 
This paper compares the distributional effects of conventional monetary policy and quantitative easing (QE) within an estimated open-economy DSGE model of the euro area. The model includes two groups of households: (i) wealthier households, who own financial assets and can smooth consumption over time, and (ii) poorer households, who only receive labor and transfer income and live "hand to mouth." We compare the impact of policy shocks on constructed measures of income and wealth inequality (net disposable income, net asset position, and relative per-capita income). Except for the short term, expansionary conventional policy and QE shocks tend to mitigate income and wealth inequality between the two population groups.
Subjects: 
Economic models
Interest rates
Monetary policy
Transmission of monetary policy
JEL: 
E44
E52
E53
F41
Document Type: 
Working Paper
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